The Truth About Taxes?

[Bryan_Ekers]

Incidentally, does anyone who actually lives or works there refer to the region as “the” Silicon Valley?

[Kimstu]

It’s the Invasion of the Increasingly Irrelevant Hijacks. What gives here, folks?

[Steve_MB]

*Originally posted by RTFirefly *
**The problem of lowering your taxes simply to keep some people from leaving, is that there will always be a Cayman Islands-style tax haven somewhere in the world, unless the right-wing nightmare of one-world government comes to pass. There are no winners in a ‘race to the bottom’, except for the rich.

Publicly-held corporations are always going to do what they can to maximize income and reduce tax expenditures. If the site of their corporate registration determines their tax status, they they’ll all eventually move to the Caymans.

This reasoning ignores the fact that there is a certain degree of extra cost and hassle to operating offshore (even if the government doesn’t deliberately harass you for it). Thus, keeping taxes below a certain threshold eliminates the incentive to take shelter in a tax haven even if the tax haven continues to offer a lower rate.